# BEGINNERS GUIDE TO NFTs

**Published by:** [grudgingPolenta0](https://paragraph.com/@grudgingpolenta0/)
**Published on:** 2022-04-14
**URL:** https://paragraph.com/@grudgingpolenta0/beginners-guide-to-nfts

## Content

According to Merriam-Webster, the word “fungible” is used to describe something that can be “replaced by another equal part or quantity”. Synonyms include “exchangeable”, “interchangeable”, and “switchable”. NFT stands for Non-Fungible Token, which is a term used to describe something that is non-exchangeable. NFTs are the units of data stored on digital ledgers called blockchains. These units of data act as proof of ownership. NBA Topshot moments, created by Dapper Labs, serve as good examples of NFTs. Every shot, pass, and dribble in a basketball game can become a “moment” represented by NFTs. Each NFT contains code that verifies that it is a unique asset. Tracking and verification is in turn made possible through the underlying blockchain protocol. With the help of blockchain technology, buyers and sellers know the exact prices paid for moments in the past. This level of transparency greatly contributes to the appeal of NFTs. Of course, no explanation of NFTs is complete without mention of Cryptokitties. Rising to popularity at the end of 2018, Cryptokitties is a game that lets users collect and breed digital cats. Users loved the fact that these digital cats could not be replicated, taken away, or destroyed”. Although most cats sell for around $66, some fetch upwards of $300,000 dollars. Investopedia gives a good overview of the underlying appeal of digital collectibles. While it might not completely explain the astronomical prices such as those seen with Beeple, it gives us a good sense of why NFTs have exploded in popularity over the last few years. Originally published at http://www.dapops.com.

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